Operations Management

Year: MMS – 1st year Semester:

Ist
Weightage: 100 marks
Duration: 40 hrs

Professor Anagha Gokhale

NE Society’s Institute of Management Studies

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 Chapter 2: Process Analysis in Industry

Process analysis is an approach that helps managers to

improve the performance of their business activities

It can be a milestone in continuous improvement

It is a documentation & detailed understanding of how

work is performed and how it can be re-designed

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What is Process Analysis?

Process analysis can be defined as “understanding process elements and the

relationships between them and identification of opportunities for
improvement.”

A process analysis is an examination of a process to understand it’s elements

such as steps and actions including;
The order of steps
What things can be done in parallel versus sequentially
Who or what performs each of the steps
May be where they are performed
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 Identify opportunity

Define Scope

Document Process
Procedure of
Process Analysis
Evaluate Performance

Re-design process

Implement change
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Infusion US case study
Infusion US is a start-up that offers powerful and energizing infusions in a non-hospital
settinng for athletes (just electrolytes,). the service process includes five activities that
are conducted in the sequence described below. (±he tme required for each activity is s
Activity 1: Welcome and explain procedure(7 min)
Activitiy 2: take vitals, insert IV, and take blood(13 min)
Activity 3: Mix infusion treatment(12 min)
Activity 4: Infusion(30 min)
Activity 5: Debrief(5 min)
Three nurses (S1, S2 and S3) offer the services in a worker paced line. the assignment
of activities to the nurses is given below

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 • S1 – Activity 1 and Activity 2
• S2 – Activity 3
• S3 – Activity 4 and Activity 5
• Assume the demand to be unlimited and that the process admits patients at the rate
of the bottleneck.
• IU1.Which nurse is the bottleneck of the process?
• IU2.What is the process u³liza³on
• ?IU3.What is the utilization of nurse 2?
• IU4.What is the cycle time in minutes?
• IU5.What is the idle time per unit at nurse 1?
• IU6.What is the average labour utilization across all three nurses?
• IU7.What are the direct labour costs associated with serving one patient? Assume
wages @$30/h for nurses 1 and 2, and $60/h for nurse 3
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 • Ruhpolding is a village in the German Alps. Given its enormous
popularity, all of its beds are always booked in the winter season and
there are 1200 beds on offer in the village. On average, skiers stayin
Ruhpolding for 10 days.
• R1. On average, how many skiers arrive in Ruhpolding every day?
• R2. A study done by the largest hotel in the village has shown that skiers
spend on average $50 per person on the first day and $30 per person on
each additional day in local restaurants.

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 • The study also forecasts that – due to increased hotel prices – the
average length of stay for this season will reduce to five days.
What will be the impact on revenues of local restaurants
compared to last year (when skiers stayed for 10 days)? Assume
that hotels consume to be fully booked. Express your answer in
$/day

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 Flow Charts
Techniques of
Process Service Blueprints

Analysis
Process Charts

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Data Analysis Tools
Bar Chart/Histogram
Block diagram
Cause & effect analysis
Control chart
Pareto analysis
Scatter diagrams
Checklists
Graphs
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Importance of Process Analysis
1. Real-time information on process & feedback
2. Extensive information density & increased knowledge
3. Optimization of production processes
4. Increase production capacity
5. Optimization of energy consumption
6. Reduced sample collection & handling
7. Enhanced safety
8. Leading to improvements in existing processes
9. Transformations
10. Optimization
11. Facilitated exploration of new material & operating regimes
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  Thank You! 

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